Navigating the Options for First-Time Buyers

Navigating your way onto the property ladder can seem daunting for first-time buyers. The right income, a good credit score and decent deposit ratio to secure the best mortgage rate can feel like a never-ending circle of hoops to jump through.
The Government, however have put several schemes in place to enable the process and make it more affordable.
Help-To-Buy and Shared Ownership initiatives can provide a ladder into owning your own home. New Homes are being built at the fastest rate seen in the last decade following an ambitious government target of 300,000 new homes each year until 2020.
Recent worries over a decline in house price growth is also positive news for those looking to buy their first home.
Although growth can vary for area to area, by and large a slowdown will mean lenders are looking at new and attractive ways to encourage people to buy. First-time buyers are key to this, after all, they have no property to sell and are able to move quickly given the right package. 
Lenders deals have also improved. Ten years ago, three mortgage lenders offered packages with a 5% deposit, In April 2019 according to Moneyfacts release, there were 60 lenders offering packages with a 5% deposit. 
The same source also stated that although packages with a lower deposit may have higher first-time buyers in new homepercentage rates, the average two to five-year fixed rate deals have been dropping year on year.
Many will have taken advantage of Help-To-Buy schemes available with New Build properties and saved a 5% deposit then utilised a Government loan to top up their deposit and access better mortgage deals.
Others may have simply saved for that deposit or approached the kindly Bank of Mum and Dad, Whichever way, deposits are being secured and there are many more mortgage products available for first-time buyers.
If navigating your way through the options seems confusing, or if you would like to chat through your options with one of our advisers to ensure you`re accessing the information you need in order to secure the right deal for you, then contact us for an informal chat or book a suitable time for us to contact you.
0800 6128 322  

Terry Hyett is the founder of Urban Sticks Mortgage Solutions ltd and has over 15 years experience in New Build and Affordable Home finance options.